Question

Q.5 K ltd issue 10,000 share of 10 SAR par value common stock, pass the necessary journal entries in the books of company if shares are issued at. 1. At Par value 2. At 10% Discount 3. At 10% Premium Answer. Journal entry in the books of K ltd Company

Answer 1

Particulars	Amount	Amount
1. At Par Value
Cash A/c . Dr.	100000
To Common Stock		100000
3. Issued At 10% Premium
Cash A/c . Dr	110000
To Common Stock		100000
To Additional Paid-in-Capital - Common Stock		10000
2. Issued At 10% Discount
Cash A/c Dr.	90000
Discount on Common Stock A/c . Dr.	10000
To Common Stock		100000